What is a Federal Employer Identification Number
A Federal Employer Identification Number, also known as a FEIN or EIN, is a unique nine-digit number assigned to a business by the Internal Revenue Service. It is used to identify the business for tax purposes and is required for all businesses that have employees, operate as a corporation or partnership, or withhold taxes on income.
The FEIN is also used to open a business bank account, apply for credit, and file tax returns. It is an essential part of starting and operating a business, and it is important to apply for a FEIN as soon as possible after forming your business entity.
How to Apply for a FEIN Online
The easiest and fastest way to apply for a FEIN is online through the IRS website. The online application process is available Monday through Friday from 7am to 10pm local time, and it typically takes about 15 minutes to complete. You will need to provide basic business information, such as the business name and address, as well as the name and Social Security number of the responsible party.
Once you have submitted your application, you will receive your FEIN immediately, and you can download and print your confirmation letter. You can also save your confirmation letter to your computer or mobile device for future reference.
How to Apply for a FEIN by Fax
If you are unable to apply online, you can also apply for a FEIN by fax. To do this, you will need to complete Form SS-4, which is available on the IRS website or by calling the IRS Business and Specialty Tax Line. You will need to provide the same information as the online application, including the business name and address, as well as the name and Social Security number of the responsible party.
Once you have completed the form, you can fax it to the IRS at the fax number listed on the form. The processing time for faxed applications is typically 4-6 business days, and you will receive your FEIN by mail once your application has been processed.
How to Apply for a FEIN by Mail
You can also apply for a FEIN by mail by completing Form SS-4 and mailing it to the IRS address listed on the form. This is the slowest method of applying for a FEIN, and it can take up to 4-6 weeks to receive your FEIN. You will need to provide the same information as the online and fax applications, including the business name and address, as well as the name and Social Security number of the responsible party.
It is recommended that you use a trackable mail service, such as certified mail or UPS, to ensure that your application is received by the IRS. You will receive your FEIN by mail once your application has been processed.
What to Do After Receiving Your FEIN
Once you have received your FEIN, you can use it to open a business bank account, apply for credit, and file tax returns. You will also need to use your FEIN on all tax-related documents, including W-2s and 1099s. It is also a good idea to keep a copy of your FEIN confirmation letter in a safe place, such as a fireproof safe or a secure online storage service.
If you have any questions or concerns about your FEIN, you can contact the IRS Business and Specialty Tax Line for assistance. They can help you with any issues related to your FEIN, including lost or stolen confirmation letters and changes to your business information.
Frequently Asked Questions
What is the difference between a FEIN and a Social Security number
A FEIN is a unique nine-digit number assigned to a business, while a Social Security number is a unique nine-digit number assigned to an individual.
Do I need a FEIN if I am a sole proprietor
You may not need a FEIN if you are a sole proprietor, but it is still a good idea to apply for one to separate your personal and business finances.
How long does it take to get a FEIN
The processing time for a FEIN varies depending on the method of application, but online applications are typically processed immediately, while fax and mail applications can take several days or weeks.
Can I apply for a FEIN over the phone
No, you cannot apply for a FEIN over the phone, but you can call the IRS Business and Specialty Tax Line for assistance with the application process.
What is the cost of applying for a FEIN
There is no cost to apply for a FEIN, and you can apply online, by fax, or by mail at no charge.
Can I change my FEIN if my business information changes
Yes, you can change your FEIN if your business information changes, such as a change in the business name or address. You will need to contact the IRS to update your information and receive a new FEIN confirmation letter.